Oil pressuring range highs - poised for fresh gains

Crude Oil prices have bounced from the USD44.82 low of 29 November, with prices pushing above range highs at USD51.93 to reach USD52.42.

Mixed short-term studies suggest consolidation in the coming days, but improving momentum readings and the bullish Tension Indicator, (not shown), anticipate a later break, with subsequent focus turning to the USD53.25 retracement as investors adopt an outright bullish stance. A further break will confirm continuation of the broad February rally, and open up the USD56.80 break level from July 2015.

Support is raised to the USD49.00 break level, but any break should stabilise above USD44.82 as background studies continue to improve and investors maintain a buy-into-weakness strategy. A break, however, will delay higher levels, and open up a deeper reaction towards the USD42.22 low of November, as investors move back to a cautious stance.